Farrell said he was “incredibly proud to continue this journey” with Ireland.
“It is a privilege to work with such a talented group of players and staff, and to represent the supporters whose passion and unwavering support drive this team forward and inspire us every time we take the field,” he said.
“What excites me most is the increasing strength and investment in pathways and the quality of talent coming through.
“There is a real confidence in the system that has been built across the provinces and age-grade programmes, and I believe with sustained effort that the best is yet to come.”
IRFU chief executive Kevin Potts said the organisation is “delighted” to tie Farrell down to a fresh deal.
“He is a truly world-class coach and an exceptional leader who has helped shape Ireland as one of the most exciting and consistent teams in the world,” said Potts.
“His impact reaches far beyond what we see on the pitch – he has instilled a deep sense of pride, connection, inspiration and belief across Irish rugby, creating a culture that truly unites players and supporters and one that Irish Fans at home and across the globe feel incredibly proud to stand behind.”
Farrell’s immediate priority is finalising his squad for the inaugural Nations Championship, with Ireland facing Australia and Japan in Australia on 4 and 11 July before taking on the All Blacks in New Zealand on 18 July.
